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- Consider a 15-year, 6% annual coupon bond with $1,000 par value. If the current YTM of the bondis 6%, what is its effective duration equal to?Find the value of x that makes the equivalent annual worth in years 1 through 8.00 equal to $700 per year. Use an interest rate of 9.00% per year. The cash flows in year 0 and year 8.00 has an unknown value x, and 1 through 7.00 has an annual worth of $700. (Round the final answer to three decimal places.) The value of x is determined to be $You are planning for retirement 34 years from now. You plan to invest $4,200 per year for the first 7 years, $6,900 per year for the next 11 years, and $14,500 per year for the following 16 years (assume all cash flows occur at the end of each year). If you believe you will earn an effective annual rate of return of 9.7%, what will your retirement investment be worth 34 years from now?
- How long will it take P500.00 to be four times its value if invested at the rate of 10% compounded semiannually? A. 20.15 years B. 36 months C. 15.24 years D. 60.75 monthsDefine the term measure of worth. Identify three different commonly-applied measures.To get the AW of a cash flow of $10,000 that occurs every 10 years forever, with the first one occurring now, it is correct to: (a) multiply the $10,000 by (A∕P,i,10 ) (b) multiply the $10,000 by (A∕F,i,10 ) (c) multiply the $10,000 by i (d) multiply the $10,000 by (A∕F,i,n) and then multiply by i
- Identify the one true statement about the annualized worth. See attachment.An office 3-tray photocopier is for sale at PHP 16,000 in cash or on terms: PHP 2,500 down and PHP 1,200 each month for the next 12 months. If you were the buyer, which purchase plan would you prefer? Money is worth 15% compounded monthly?A businessman is faced with the prospect of fluctuating future budget for the maintenance of the generator. During the first 5 years, P1,000 per year will be budgeted. During the second five years, the annual budget will be P1,500 per year. In addition, P3,500 will be budgeted for an overhaul of the machine at the end of the fourth year and another P3,500 for an overhaul at the end of 8th year. Assuming compound interest at 6% per annum, what is the equivalent annual cost of maintenance?
- UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS AND DRAW THE CASH FLOW DIAGRAM. NO LONG EXPLANATION NEEDED. FOLLOW THE INSTRUCTIONS CAREFULLY. Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one is Php 250,000 and f = 6% per year thereafter. Find the equivalent uniform gradient amount over the same period if the initial value of the cash flows at the end of year one is Php 200,000. Answer the following questions to determine the value of the gradient amount, G. The interest rate is 8% per year. a. What is P0 for the geometric gradient series?b. What is P0 of the uniform (arithmetic) gradient of cash flows?c. What is the value of G?A Company wants to prioritize the efficiency and effectiveness of its company. On the advice of the Technical Manager, Naufal Fahmi, to save energy by installing a device that costs Rp. 200 million. The tool is estimated to provide savings of Rp. 10 million/year in the first 2 years, then increased to Rp. 12 million/year for the next 5 years, and Rp. 15 million in the following years. If the age of the tool is 10 years. If MARR=6% a. Create cashflow from this case b. Should this decision be made?Suppose that you are looking to acquire a foreign super car to match your newly bought mansion. The dealership agrees to your bargain where you pay a down payment of 500 thousand pesos. To pay off the car, you are to pay an annual payment of 100 thousand pesos at the end of every year for a span of 10 years. However, your payment begins after 5 years from the deposit. Determine the amount of the super car if the rate is 14% compounded annually. Show Complete Solution.